A report by Nansen noted that 64% of the 11% ETH circulating supply is under the control of Coinbase-like crypto platforms.
At present, the whole crypto industry is waiting for the “Merge” of the Ethereum blockchain. The developers behind Ethereum blockchain are working to shift the Ethereum blockchain from Proof-of-work to Proof-of-stake Consensus, which is named “TheMerge”.
Before the Merge, the majority of the crypto exchanges are holding ETH of users under a condition to give better returns to the users against the freezing till the merge will complete.
Recently a crypto analytic platform Nansen highlighted the significant control on the 64% from the 11% of all ETH staked funds is under the control of Lido finance, an unlabelled group of Validators & Coinbase.
Nansen’s report raised concerns about the decentralized nature of the Ethereum blockchain network.
“the top 9 addresses (excl. treasury) hold ~46% of governance power, and a small number of addresses typically dominate proposals. The stakes for proper decentralization are very high for an entity with a potential majority share of staked ETH.”
The report also confirmed that the Community of Lido finance is continuously working to find out the possible solution to reduce the risk of over-centralization.
ETH Price Action
The current trade price of ETH is $1,733 and this price is down by around 50% over the one year of the period.
Few experts of the crypto industry claimed that the incoming week may bring two different scenarios, in which ETH may pump significantly and on the other side it may plunge badly because of the birth of new coins on the PoS chain.